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      Hainan Airlines to launch 200-mln-yuan subsidiary

      2012-10-26 09:06 Xinhua     Web Editor: qindexing comment

      Hainan Airlines, China's fourth-largest airline, will launch a subsidiary airline at a cost of 200 million yuan (about 31.5 million U.S. dollars) in order to expand its operations in southeast China, the airline's parent company HNA Group said Thursday.

      Hainan Airlines will hold a 60-percent share in Fuzhou Airlines, the company said.

      Fuzhou State-Owned Assets Investment Holdings Co., Ltd., funded by the Fuzhou municipal government, will hold 20 percent of the shares, while the remaining shares will be held by other investors, the company said.

      HNA did not give a timetable for the airline's launch, but said it will offer international and domestic services for passengers and cargo, as well as tourism-related services and aircraft equipment.

      Market analysts said the airline will compete with the China Southern Air Holding Company (CSAH)'s Xiamen Airlines, which dominates the air travel market in east China's Fujian Province.

      Founded in 1993, Hainan Airlines is a Chinese airline that operates nearly 500 routes to more than 90 destinations around the globe.

      Earlier this week, HNA became the first Chinese company to break into the European air travel market by acquiring a 48-percent share of French airline Aigle Azur.

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